Maxwell Technologies Sells Off Business Units for $20M
A few weeks ago, Miva Corp., a maker of software aimed at helping small- and medium-size businesses conduct e-commerce, said it was laying off six people in a cost-cutting move.
Last week, the Clairemont firm said it laid off another 20 employees in a “resizing of its business operations in order to achieve profitability.”
“Whenever you stand out in the rain, you’re going to get wet,” said Joe Austin, Miva’s CEO. “The current market conditions have created a torrent of economic challenges for the e-commerce industry. Miva distributes its products through channels that have been adversely affected by the dot-com fallout.”
The cuts last week were made in sales, marketing, business development and administration. Counting the earlier reductions, the firm’s total employment decreased from 65 to 39 people.
Founded in 1996, Miva’s software is used by Web hosting companies, and is usually customized with other software to fit the e-commerce needs of smaller businesses. Its main product is called Miva Merchant.
Last month, Austin said Miva had about $3 million in revenues in 2000 and is expected to double that amount this year.
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Maxwell Technologies Sells Units:
San Diego-based Maxwell Technologies sold off five of its business units , all involved in government contracting , to SAIC and another buyer for a combined $20 million. The second buyer requested anonymity.
SAIC purchased three of the units: contract research and development; electronics technology; and high-power microwave and pulsed power. Together, the units have 103 employees, all of whom are expected to be transferred to SAIC.
Carl Eibl, Maxwell’s president and CEO, said that proceeds of the sale will be used to pay down bank debt incurred over the past year as the company reorganizes itself and focuses on its commercial power and computing businesses.
“This completes the process we began in early 2000 to transform Maxwell into a product-driven, commercial enterprise,” Eibl said. “We are pleased to have been able to place our defense contracting business and nearly all of its employees with two leading players in the industry.”
The unnamed buyer of the two remaining Maxwell units consisting of about 115 employees is a major defense contractor, said Mike Sund, a Maxwell spokesman. OMM CEO Resigns: OMM Inc., a San Diego-based maker of optical switch components used by telecommunications manufacturers, announced CEO Hus Tigli resigned April 3 and was replaced by Philip Chapman, 47. Tigli was hired as CEO in February 2000
“He resigned. We’re not commenting on his behalf on the reasons,” said Randy Sutherland, OMM’s director of corporate communications.
OMM withdrew a planned $100 million IPO last month because of dismal market conditions and said it is actively seeking private capital for its operations.
“We raised about $105 million over the past three years and have enough cash to last the rest of this calendar year,” Sutherland said.
Chapman, OMM’s former chief financial officer, has been with the company since last May. Previously, he worked for eight years as chief financial officer for Arizona-based Microchip Technology Inc., and also served as CFO for Syntellect Inc. Chapman has an MBA from Harvard, and a BA from the University of California.
Founded in 1997, OMM makes components that are included in switching devices that are faster than the current generation of electrical switching systems. It has about 400 employees, most of whom work in San Diego.
In other news, OMM announced former Gateway CEO Jeff Weitzen was named to its seven-member board of directors. Chapman said Weitzen was selected because of his extensive background in telecom, including an 18-year career at AT & T;, where his last job was executive vice president of business markets division. Weitzen resigned in January when Gateway chairman Ted Waitt decided to return as CEO and take more control of the company he founded.
Continuous Computing Gets $21 Million:
San Diego-based Continuous Computing Corp., a provider of voice-over packet platform components for telecom equipment manufacturers, said it received more than $21 million in equity funding from several VCs.
The financing round was led by Technology Crossover Ventures of Palo Alto, and supported by Palomar Ventures, Smart Technology Ventures and senior partners of Hambrecht + Co.
Continuous Computing makes components used by some of the largest telecom players in the world, including Cisco Systems, Alcatel, Ericsson, Lucent Technologies and Nokia.
The Sorrento Valley firm has 87 employees, including 79 who work locally, said spokesman Alex Ebel.
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Anacomp Delays Sale:
Poway-based Anacomp Inc., a provider of document management and technical services, said negotiations for the sale of its docHarbor business unit have gone on longer than anticipated. The company announced in January it entered a letter of intent to sell the unit to an undisclosed buyer in a deal that it expected to be completed March 15.
The sale would result in Anacomp having two business units: Document Solutions and Technical Services. Reading, Mass.,-based docHarbor, which provides Web-based storage and delivery services to business customers, has 92 employees.
Anacomp’s overall employment is 2,015 people, including some 400 at its headquarters office. The stock, traded over the counter, dipped down to its all-time low of a nickel last month. The 52-week high was $15.87.
Chromagen Gets $15 Million:
San Diego-based Chromagen, a developer of sensitive gene expression technologies used in drug discovery research, said it closed a $15 million round of financing, bringing the total capital raised to date to more than $30 million.
Investors in the round include Zesiger Capital Group, Essex Capital, SAC Capital Associates, DRW Venture partners, United Capital, Jafco, and Nippon Venture Capital.
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Pentech Gets Funding:
San Diego-based Pentech Solutions Inc., an energy management application service provider, said it closed a $4 million, third round of financing with Sempra Energy acting as the lead investor. Existing investors Nth Power Technologies Inc. and Cinergy Ventures also participated.
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